6 Places To Retire That Are Better Than Hawaii — and Way Cheaper

Retiring in Hawaii might seem like a dream come true, but the state isn’t without its drawbacks. For one thing, the average home value is around $860,000. This is roughly twice the national average. The state also taxes nearly every form of retirement income, except private or public pensions.

If you’re thinking about retiring and want to move somewhere that’s arguably better than Hawaii, especially when it comes to finances, there are a few options to consider. Some of these are located within the United States, while others will see you going farther abroad.

Still, if you’re flexible, you could just find the next best place to spend your retirement years.

“For retirees who want to stay closer to the U.S., Mexico offers a convenient and affordable option. Cities like San Miguel de Allende and Lake Chapala have large expat communities and offer a high quality of life at a fraction of the cost of U.S. retirement destinations,” said Neal Shah, founder and CEO of CareYaya.

Mexico City has a very low cost-of-living index of just 47.3, according to Numbeo. For context, a cost-of-living index of 100 is considered average in the United States. This means Mexico City and surrounding areas are much cheaper to live in.

Plus, the country as a whole has a lot to offer.

“Mexico also boasts a rich culture, delicious cuisine and stunning natural beauty, from its pristine beaches to its vibrant cities,” Shah said. “While safety concerns are a consideration in some parts of the country, many retiree-friendly communities offer a secure and welcoming environment.”

Mexico also doesn’t tax retirement income. You’ll still be taxed by the U.S. government though.

Costa Rica is another popular choice for U.S. citizens who want to retire without going too far abroad.

“Based on my travels around the world and time living abroad, I confidently recommend Costa Rica as the ideal retirement alternative for one simple reason — pura vida,” said Tim Schmidt, a travel expert and founder of All World. “Though I now call South Florida home, I lived in Costa Rica for nine years. And I can tell you those were the happiest and most fulfilling years of my life.”

Similar to many parts of Hawaii, Costa Rica has some gorgeous scenery for those who prefer that over the hustle and bustle of metropolitan life. But the cost of living is a major draw by comparison.

“Retirees have access to modern amenities and quality healthcare,” Schmidt said. “The infrastructure and services rival the U.S. but at a lower cost. Medical care is top-notch yet cheap. Most importantly, Costa Rica’s cost of living is 50% to 60% lower than the U.S. Retirees can live comfortably on $2,000 monthly. You can enjoy paradise without going broke.”

San Jose, Costa Rica, has a COL index of 54.6.

“For retirees seeking a European lifestyle at a fraction of the cost of other popular destinations like Spain or Italy, Portugal is a compelling choice,” Shah said. “The country offers a mild Mediterranean climate, stunning beaches and vibrant cities like Lisbon and Porto. Portugal also has a relatively low cost of living, with affordable housing, healthcare and dining options.”

Because it’s so centrally located, retiring in Portugal makes it easy to travel to other European countries — or even back to the U.S. for a visit.

“What I appreciate most about Portugal is how you really get the full package without the high costs,” said Jackson Groves, professional adventure photographer and travel expert with Journey Era. “From beautiful scenery like Sintra’s lush mountains to the hospitality of locals everywhere, the lifestyle is top notch. And whether you prefer historic cities or beaches along the Algarve, there are phenomenal communities all around.”

With a COL index of 51.1, your money will go much further in Portugal than in Hawaii.

If cost is a concern, you might want to avoid some places in North Carolina — like Hendersonville or Charlotte. However, there are still some highly affordable locations in the state that also offer a high quality of life.

Alonso Marly, a travel expert at Skylux Travel, suggested Marion in particular for those age 55 and up.

“The collective hard work and local pride of the community have transformed it into an ideal mountain destination for seniors,” he said. “It is a very compact yet vibrant and affordable place that brings the local community together for various festivities, not to mention Marion’s breathtaking nature that helps retirees stay active throughout the year.

“Besides, this town is also known for its senior communities and homes, which offer both independent and assisted living, making the retirement years much more enjoyable.”

The COL index in North Carolina is 77.3. The average house costs $329,225, according to Zillow.

For retirees seeking a quieter lifestyle without the high cost of living, Oklahoma could be the place to go. The average home value is just $203,455, less than a quarter of what you’d get in Hawaii. While you will miss out on those stunning beaches, you might not mind the price.

“The living costs fall below the average here for everything from housing to groceries and healthcare,” Marly said. “The area is considered relatively safe and offers plenty of amenities for active lifestyle and culture lovers, with hiking trails, parks, art galleries, museums and theaters.”

Oklahoma is also home to Saint Francis Hospital, one of the best medical facilities in the region.

Last but not least, if you’re looking for a place that’s on par with Hawaii in many ways but costs way less, check out Malaysia.

“This Southeast Asian country may not be the first place that comes to mind for retirement, but it offers a compelling mix of modern amenities, cultural diversity and natural beauty,” Shah said. “Cities like Penang and Kuching offer a high standard of living at a low cost, with excellent healthcare, infrastructure and dining options.”

The country also boasts jungles, beautiful islands, rainforests and an abundance of wildlife — things you just won’t find anywhere else. It’s also centrally located for those who want to experience the wonders of Asia in their retirement years.

Kuala Lumpur has a COL index of 34.6. Penang is even cheaper at just 32.1.